The Canadian federal government is issuing a warning to automaker Stellantis, threatening legal action if the company fails to fulfill its commitments to Canadians as agreed upon in an auto pact promising substantial financial incentives. Industry Minister Mélanie Joly expressed deep concern in a letter to Stellantis CEO Antonio Filosa regarding the company’s decision to relocate production of its Jeep Compass model from Brampton, Ont., to Belvidere, Ill.
The shift was part of a $13 billion US investment in Stellantis’ American manufacturing operations, aligning with U.S. President Donald Trump’s push for a robust automotive sector in the United States. Amid challenges posed by the current U.S. tariff environment, Joly emphasized Stellantis’ significant pledges to Canada and its workforce, warning that failure to meet obligations could result in legal repercussions.
Two years ago, Stellantis entered an agreement with the federal and Ontario governments, promising up to $15 billion in performance incentives based on certain conditions, including sustaining production in Brampton. Joly stressed that any deviation from this commitment would be considered a breach of their agreements. The Brampton plant has been inactive since 2023 as it undergoes upgrades for new vehicle models.
In a similar deal struck in 2023, both levels of government partnered with Volkswagen and its subsidiary for an EV battery plant, offering up to $13 billion in incentives. However, Stellantis’ Brampton facility reportedly fell short of meeting project milestones and job creation requirements, leading to the withholding of provincial funding. Ontario Premier Doug Ford stated that the Brampton plant would not receive additional funding, though some funds had been allocated to the Windsor plant.
Although Stellantis indicated plans for the Brampton plant, details were not disclosed. When pressed for information on government funding and compliance with the auto pact terms, the company declined to provide specifics, citing confidentiality.